This week, we celebrated the contribution women make to Irish lives and also highlighted some of the ways that equality has yet to be achieved, including in our financial lives.
The harbinger of not being equal decision-makers about money and often not having the same voice as male partners, according to the study, is likely to make more money or have access to more information. This must change. So I looked at some of the areas where women can learn more and have more control over their finances (and their families).
Claer Barrett presents the Financial Times Money Clinic podcast and says the gender pay gap has widened. “Our pensions tend to be low, we live longer, spend more time taking care of others and all of these have a negative effect on our finances,” she said.
Now, with inflation rampant and the cost of living rising, things are getting worse, rather than better.
“I wish we could fix the biggest positive – the feeling that financial independence gives you,” she said. “I would define this as moving from feeling overwhelmed by money to feeling more in control; Make your own decisions, set financial priorities, develop productive habits like budgeting to help achieve those goals. ”
We want it all. And we were told we could have it. The only problem is that when it comes to finances, being in debt for one thing can keep you from getting a loan for something else you really need.
“Women need to start securing their finances in the future,” says Alison Fearon, MD of Switcheroo. While a new car looks great, short-term debt is expensive and can make your chances of getting a mortgage approved.”
Central Bank mortgage regulations mean that for first-time borrowers, a loan-to-income (LTI) cannot be more than 3.5 times and a loan-to-value (LTV) no more than 90 pc. For the second or subsequent buyer, the LTI is again 3.5 and the LTV should not be more than 80pc.
“The second level of affordability tends to be bank-specific, with each bank using slightly different metrics and metrics to gauge whether a customer can afford to pay their bills,” says Fearon. their mortgage or not. “This is where personal and auto loans come in. If you have existing financial commitments like a car loan, this will affect your ability to pay off your mortgage.
“Central Bank data shows that at the beginning of 2020, the average car personal contract package (PCP) was around €26,000. A €26,000 car loan with a typical APR of 6.8pc will set you back €509.50 per month for five years. This repayment number will be factored into your affordability assessment and as a result you will have less disposable income for your mortgage. A car loan of this size would reduce the size of a mortgage affordability to a whopping €85,000. ”
According to research from ESRI, women earn 35pc less in retirement than men. Although state benefits have increased in recent years, women are less likely to get valuable professional or personal pensions. Just 28pc for women, compared to 55pc for men. Despite legacy issues such as marriage barriers, there are cases where women are more likely to suffer from job disparity, working fewer hours and lower total income.
Ms Barrett says many women say they will ‘never’ invest in the stock market or stocks. “But if you have a retirement plan, you’re ready!”
Standard Life’s Sinead McEvoy says the gap is narrowing. “Women working today are as likely to own a pension as men. Through our research, however, we continue to see a number of different behaviors and attitudes that ultimately, over time, leave women with brief changes and emotional burdens. “
Women don’t start receiving pensions early enough, she says.
“When you sign up for a half marathon, you’ve laid out a plan to gradually build up your mileage so you’re in the best possible position on race day. You may be tempted to skip a day, and while you can still run that day, the higher risk of injury comes with unwarranted stress that you’ll likely regret. In a similar way, our research shows that women are almost twice as likely as men to expect them to save more for retirement.”
If you are an employee Find out who is responsible for signing your pension. Remember that all employers, regardless of size, must provide you with access to a pension.
Some employers will set up employee pension schemes and will invite you to join once you start working. You should absolutely do it.
You can find advisors to help on www.financialbroker.ie.
Many women are risk-averse. But the deposit is losing, not generating money.
Ms Barrett said: “By moving money into a superannuation, your money can grow with you and you could get a tax free break in retirement.
She added that it’s important in a relationship to discuss money. This is not a first date conversation, but both of you should knowWhere is the money owed: passwords, documents, wills, etc.”
Family tax credit
Taxback.com’s Mark Corcoran says there are plenty of women-centric and family-centered relief and credits that can be claimed annually, but often aren’t. It was due to a mix of anxiety about contacting Revenue and/or fear of filling out forms.
Both are baseless, he said, and no one should worry about claiming what they’re due.
Tax free (at 20pc) on a variety of medical expenses (including GP bills, prescriptions, physicals, child therapy, educational evaluations, etc.) Which family member pays?
Maternity and fertility
Tax rebates are available at 20pc on the cost of maternity and general care for women during pregnancy and fertility treatment, which can cost between €5,000 and 40,000, depending on the number of methods. treatment is required.
Homecare carer tax credit
You can claim this credit – worth up to €1,600 – if you are in a civil/married partnership where one person stays at home to care for the children, the other is over 65, or a person with a disability. They can work part-time and earn up to €7,200 per year and still get relief. Working spouses get tax credits.
Single Child Caregiver Credit (SPCCC)
You may be eligible for this credit if you are caring for a child on your own. The child in your care can be your own, your adopted child, or any child you care for at your expense. This credit is worth €1,650.
https://www.independent.ie/business/personal-finance/an-unequal-world-why-do-women-continue-to-struggle-for-financial-independence-41437857.html An Unequal World – Why do women continue to fight for financial independence?